Wednesday, 13 May 2026

 Bev McARTHUR (Western Victoria) (12:27): (1322) My question is to the Minister for Casino, Gaming and Liquor Regulation. Minister, I see you have bowed to pressure and increased the number of tobacco licensing inspectors from 14 to 42 in 2026–27. I am glad you were listening, Minister. It is still well short of other states, with New South Wales having 78 and Queensland hiring another 43 – more than your entire staffing. I guess they can afford it but you cannot. Anyway, Minister, you said in the chamber on 1 April that the number of inspectors alone does not paint the picture and that instead you are using an intelligence-led approach. Why the sudden backflip, Minister?

 Enver ERDOGAN (Northern Metropolitan – Minister for Casino, Gaming and Liquor Regulation, Minister for Environment, Minister for Outdoor Recreation) (12:28): I thank Mrs McArthur for her question, but I do reject the premise of the question. No government in the history of this state has done more to tackle this illicit tobacco market. That is why we have implemented our first ever tobacco licensing scheme. When you were in government you did not have a licensing scheme. We have not only set up this licensing scheme, we have invested record amounts, with further investments – thank you, Treasurer – of $46 million and an additional $13 million in this year’s budget. Under this scheme tobacco can only be sold by people that have passed a fit and proper person test, and enforcement has begun.

But I have always said that this is a national problem that requires a national approach. In other jurisdictions that have had longstanding licensing schemes they have similar issues, you would appreciate, because there are a number of factors for the cause of the growth of the illicit tobacco sector. Again, that is not me saying it, that is the sector saying it. Let me quote Theo Foukkare, CEO of the Australian Association of Convenience Stores. He said:

Excessive excise has created a massive price gap that is fuelling a multi-billion-dollar black market.

The Master Grocers Association said that independent retailers are following the law, but they cannot compete with unregulated products. Julian Hill, the federal assistant minister, said:

… high-rates of excise over the last decade has contributed to creating a large price differential …

There are a number of factors, which include obviously the price differential and the fact that these products enter into our country but also the fact that there are criminal organisations behind the supply of these products. These are not only issues for our tobacco licensing scheme, Victoria Police and federal police. International criminal organisations are behind it, so it means federal agencies, including ASIO, need to tackle this issue all together, and we are working together to tackle these issues.

Victoria is doing its bit. Our Treasurer has announced further announcements. They are on the ground; they are making inspections. Almost 4 million cigarettes have already been seized in the period in which the regulator has been on the ground – 4 million off our streets. And there are a high number of arrests: 200 offenders have already been arrested. So I think we know this work is being done, with cooperation between the tobacco regulator and Victoria Police. I want to thank all our frontline staff, whether they are in Tobacco Licensing Victoria, whether they are in Victoria Police or in our federal agencies that are working together. But this issue is a transnational criminal organisation issue.

 Bev McARTHUR (Western Victoria) (12:30): Thank you, Minister. Your own budget papers reveal a target of only 500 tobacco licence inspections for the whole of 2026–27 and yet simultaneously show that 8000 licence applications are expected next year alone. How can these 42 inspectors, visiting barely 6 per cent of licence applicants between them, possibly stop the firebombings, lawlessness and crime running rampant on your watch?

 Enver ERDOGAN (Northern Metropolitan – Minister for Casino, Gaming and Liquor Regulation, Minister for Environment, Minister for Outdoor Recreation) (12:31): I thank Mrs McArthur for her supplementary question. It might also provide an opportunity for me to inform the house that the numbers you are quoting are based on estimates. Now we know the size of the legitimate market, so we can target the illegitimate part of the market. Since the regulator has been in place we have had 4900 applications for licensed premises. But I think the goal is clear. We do not want to go to all 4000 stores, because we would be overburdening legitimate businesses that are low risk. We are talking about the supermarkets and the master grocers that are owned by legitimate mum-and-dad businesses. It is not right. So what we are targeting is the risky end. We are intelligence led, working with Victoria Police and working with federal agencies to target them. So I think it is not about the number, whether it be 100 or 500, it is where the problem is, and that is what we are tackling.